search query: @indexterm ACCOUNTS / total: 97
reference: 10 / 97
Author: | Jack, W. Levinson, A. Rahardja, S. |
Title: | Employee cost-sharing and the welfare effects of flexible spending accounts |
Journal: | Journal of Public Economics
2006 : DEC, VOL. 90:12, p. 2285-2301 |
Index terms: | accounts expenditure health moral hazard subsidies |
Language: | eng |
Abstract: | This article is based on a claim that Flexible Spending Accounts (FSA) subsidize out-of-pocket health expenses not covered by employer-provided health insurance, making health care cheaper ex post, but also reducing the incentive to insure. This study uses a cross section of firm-level data to show that FSAs are indeed associated with reduced insurance coverage, and to estimate the welfare consequences of this shift. The findings also suggest that FSAs may explain a significant fraction of the shift in health care costs to employees that has occurred in recent years. |
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